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The Johan Sverdrup Oil Field development has been given the green light and major contracts have been awarded. Johan Sverdrup is among the largest oil fields on the Norwegian shelf, and will at peak contribute with 25% of the production from the Norwegian shelf.

The Project

Project Type: New Facility

Project Summary: An upgrading facility to be built next to the existing Cairo Refinery and will use heavy products as feedstock.

Main Contractors: ERC has agreed an engineering, procurement and construction (EPC) contract for the project with a consortium formed between GS Engineering & Construction Corporation (GS) of South Korea and Mitsui & Company, Ltd. of Japan. Worley Parsons Ltd has been commissioned as the project management contractor on behalf of ERC for the construction program.

The Egyptian Refining Company (ERC) is building a state-of-the-art US$ 3 billion greenfield second-stage oil refinery in the Greater Cairo Area, which will produce over 4 million tons of refined products, including over 2 million tons of EURO V diesel, the cleanest fuel of its type in the world. ERC’s production will be sold to the Egyptian General Petroleum Corporation (EGPC) under a 25-year offtake agreement at international prices.

Regulatory and environmental approvals for the project have been obtained and ERC has signed a lump-sum turnkey contract with GS Engineering & Construction / Mitsui & Co. The facility is expected to be fully operational by the end of 2015.

The main part of the debt is expected to come from JBIC and Nexi with 40%. Kexim will provide 30% and the rest will come from the European Investment Bank (EIB) and African Development Bank (AfDB).

Refining Units

The ERC facility will consist of a vacuum distillation unit, a hydro-cracking unit, naphtha and distillate hydro-treating units, a reforming unit, a hydrogen plant and a delayed coking unit.